New Look plans for flotation

Fashion retailer New Look is drawing up plans for a £1.7bn-plus stock market float. The company, which is backed by private equity firms Permira and Apax, could list on the stock market as early as January. A formal "beauty parade" of investment banks is due to begin imminently, with advisers expected to be appointed within weeks.

New Look is one of a number of private equity-owned groups understood to be being lined up for flotation. Following the financial turmoil of the past two years there is pent-up demand from private equity groups who are under pressure from investors to sell a number of their investments. According to a recent survey by Ernst & Young, private equity groups saw a slump of nearly 70pc in the number of major investments sold in 2008. Acromas, which owns the AA and Saga, and Birds Eye Iglo are among the private equity-owned companies tipped to float next year.

The size and success of the New Look float will be the first real test of investor appetite for these debt-laden businesses.